M:
The Big Picture
Spring/25
Regional New South Wales
Residential
Residential Sales
Sales
Regional NSW residential annual rolling sale transactions tallied to 49,727 in the second quarter of 2025, a downward movement of 5% from the previous quarter but 2% higher than a year ago This was influenced by a lower number of residential listings and the market anticipating a further reduction in interest rates As a benchmark, over the past five years, the annual average was 52,100 sales.
Share of NSW Annual Sales
The share of NSW total number of annual residential sales recorded in Regional NSW was 33% at the end of Q2 2025. This was higher than one year ago when the proportion was 30%, and remains above the 31% share recorded five years ago Over the past year, Regional NSW (2%) outpaced Greater Sydney (-11%) in the annual growth of sales activity
Total Number of Annual Sales
Regional NSW
Share of NSW Annual Sales, by Number
Regional NSW
Duration +7 days
Regional NSW residential homes took an average 98 days on market - from the time they were listed to the day they went under contract - in the year ending Q2 2025 This duration was 97 days a quarter ago (+1 day) and 91 days a year ago (+7 days) A lower number of days on market mean homes are selling fast with more desirable properties, while a higher number of days suggests a slower market with above market values. Looking back, the five-year average has taken 96 days to sell a home
Average Days on the Market Regional
Listings
Newly advertised property listings in Regional NSW were 12.6% lower in the month of June 2025, than the equivalent period last year, as reported by Cotality This trended below the -9.3% for the combined regional areas of Australia and -7 0% across Australia
Regional NSW’s total number of listings in the month of June 2025 were 5.7% below the equivalent period last year, according to Cotality By comparison, total listings were -5.6% across the combined regional areas of Australia and -2 1% Australian-wide
Change in Average Prices Regional NSW Average Price $801,000
Residential property prices across Regional NSW rose by 2 6% in the year ending Q2 2025, with a 0 1% increase recorded in the most recent quarter This brought the average residential value to $801,000, reflecting a steady upward trajectory in housing demand whilst listings remain lowered Annual residential price growth has averaged 9 4% over the past five years.
Forecast for Average Prices Regional NSW Price Outlook +4%
Looking ahead, McGrath Research anticipates Regional NSW residential property prices to increase by 4% by the end of 2025, followed by a stronger 5% rise in 2026. Factors taken into consideration include the balance between forecasts of a stronger economy, higher unemployment rates, but a reduction in mortgage interest rates encouraging stronger buyer confidence
Residential Rents
Regional NSW Vacancy 1.6%
Change in Residential Rental Vacancy
Regional NSW residential rental vacancy was recorded at 1 6% in Q2 2025, falling 22 bps in the quarter and in total, 11 bps lower over the past year Generally, 3% vacancy is considered a balanced market between rental supply and demand Below this benchmark is considered to be an undersupplied pool of rental homes. Over the past five years, rental vacancy has also averaged 1 6% per year
+8 bps
Change in Gross Rental Yield
Regional NSW Yield
Residential gross rental yields rose 1 bp in the Q2 2025 quarter to be 4 34% across Regional NSW, while being 8 bps more than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. Gross rental yields have averaged 4 36% over the past five years
from a year ago
Residential Rents Update
Average Weekly Rent $595
Regional NSW residential rents rose 1.7% in Q2 2025, while increasing 6 3% over the past year, to stand at $595 per week Low vacancy and high population growth are keeping rents elevated, albeit now rising at a slower pace than previous years On average, over the past five years, rents grew 7.5% per year.
Change in Average Weekly Rents
Regional NSW
Regional NSW Rental Outlook +6%
Forecast for Average Rents
As the completion of new builds remains low across Regional NSW, there remains an undersupply of new homes being added to the rental pool while the population continues to climb As a result, McGrath Research forecast sustained upward pressure on rents of 6% at the end of 2025, with a further 5% rental growth likely in 2026
Regional NSW
Regional New South Wales (NSW) refers to the area outside of ‘Greater Sydney’ or ‘Rest of State’ for NSW as defined by the Australian Bureau of Statistics.
Guiding you home
Michelle Ciesielski
Head of Research, McGrath Research michelleciesielski@mcgrath com au +61 414 694 220
www mcgrath com au